The Nairobi Securities Exchange (NSE) entered uncharted territory this week, as its market capitalization crossed the KSh 3 trillion mark for the first time in history.
- •This milestone achievement, driven by a powerful wave of domestic investment, caps a spectacular rally that has created roughly KSh 1.1 trillion in new shareholder wealth in 2025, excluding dividends.
- •The rally has been broad with the NSE All Share Index (NASI) being up 56.21% year to date, its strongest annual performance since its launch in 2008.
- •Data from the Capital Markets Authority (CMA) reveals that local investors are now the dominant force, accounting for over 70% of trading activity—the highest sustained domestic participation since 2010.
The NSE 20 Index has gained 60.2%, while the NSE 25 and NSE 10 indices have each risen more than 52 %.
The boom has touched nearly every corner of the market, but several sectors have been standout performers.
- •Investment services and pure investment firms have been in a league of their own, with average returns of 236.7% and 182.2%, respectively.
- •They were closely followed by high-flying gains in automobiles (150.5%), energy (91.8%), and insurance (89.5%).
- •Even traditionally steadier sectors like banking and manufacturing posted robust gains of over 40%, illustrating the rally's impressive depth.
- •Sector Average Returns (YTD)
| Sector | YTD Return |
|---|---|
| Agricultural | 14.1% |
| Automobiles and Accessories | 150.5% |
| Banking | 52.2% |
| Commercial and Services | 71.8% |
| Construction and Allied | 55.3% |
| Energy and Petroleum | 91.8% |
| Insurance | 89.5% |
| Investment | 182.2% |
| Investment Services | 236.7% |
| Manufacturing and Allied | 40.4% |
| Telecommunication | 77.7% |
| Exchange Traded Funds | 32.4% |
Twelve stocks traded at or above their 52-week highs in Thursday's session, including Absa, Co-operative Bank, Equity Group, I&M Group, KCB Group, and Safaricom. Safaricom's HY26 results contributed to increased turnover.
Behind these numbers lies a fundamental shift in market dynamics. While foreign involvement has eased, overall market turnover has held steady, underscoring that this is a story of growing local confidence, not foreign retreat.
This surge in local engagement is no accident. A series of strategic reforms has democratized market access.
- •The introduction of single-share trading eliminated the old 100-share minimum, while digital brokerage platforms have brought the market to millions of smartphones.
- •Educational initiatives like the NSE Virtual Investing Challenge, which attracted a record 7,400 participants this year, and the newly launched Digital Academy are cultivating a new generation of Kenyan investors.